Historically, Five Star has operated with four divisions, East, Central, West and a fourth division made up of the rehab hospitals and pharmacy operations.
Previously, our standalone skilled nursing facilities were part of the geographic region in which they were located. We have now segregated our standalone skilled nursing facilities into one region. Through this change, we will cut about $0.5 million out of our general administrative expenses as well as provide a more focused oversight over both segments of our senior living business.
We continue to actively grow the percentage of our revenues derived from private pay senior livings by the doing the following; leasing properties under long-term leases, managing properties on behalf of owners, and purchasing properties using our own balance sheet. We look further to accelerate the process by continuing to sell less profitable skilled nursing facilities.
2011 was a year of transition and growth for Five Star. Five Star's business plan for 2011 was three fold; to increase rate, to maintain and increase occupancy, and to operate efficiently and control costs. We were successful on all fronts for the year. We grew a same-store average daily rate grew by 2.3% for the full year. We increased occupancy. Total senior occupancy grew by 20 basis points and independent assisted living occupancy grew by 80 basis points for the full year.We held cost in check, rates remained and stayed flat at 50% of revenues and G&A remains the lowest in the industry at 4.4% of revenues. We currently employed over 25,000 employees and have annual revenues in excess of $1.2 billion. With a total of 246 communities containing over 27,000 units, Five Star is one of the largest operators of senior living communities in the country.On a very positive note, I am pleased to announce that we are working with a group of lenders to negotiate a new $150 million senior secured revolving credit facility. We expect the facility will be secured by approximately half of the 31 senior living properties that we own.Read the rest of this transcript for free on seekingalpha.com
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